NewStar Financial, Inc. (NEWS), a specialized commercial finance company, reported Wednesday an increase in fourth-quarter net income, helped by sharpely lower year-on-year loss and expenses related to asset sales.
Fourth-quarter net income increased to $2.8 million, or $0.06 per share, from $1.2 million, or $0.03 per share, in the previous year.
The results for the quarter included $2.1 million after-tax equity compensation expense related to the 2006 IPO and $0.3 million pertaining to the tax impact of timing differences related to the recognition of losses on a prior asset sale. The quarterly results of 2007 included $1.65 million of IPO related compensation expenses and $4.24 million charge related to loss on assets sold.
Adjusted net income for the quarter declined to $5.1 million, or $0.11 per share, from $7.1 million, or $0.18 a share, in the prior-year period.
On an average, three analysts polled by Thomson Reuters expected the company to break even in the fourth quarter. Analysts' estimate typically excludes special items.
Fourth-quarter net interest income before provision for credit losses marginally decreased to $24.4 million from $24.8 million in the prior year.
For the full year, the Boston-based company posted a net income $22.40 million, or $0.46 a share, as against a net loss of $8.64 million, or $0.23 a share, reported in 2007. Adjusted net income declined to $27.66 million, or $0.57 a share, from $28.41 million, or $0.76 a share.
Net interest income before provision for credit losses for the whole year increased to $102.55 million from $94.59 million, in the past year.
NEWS is currently trading at $2.36, up $0.24 or 11.32%, on the Nasdaq.
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